The role of district heating in the future Danish energy system

In the EU and in Denmark, the aim is to reduce dependence on fossil fuels and to use energy more efficiently. District heating and combined heat and power have significant potential with regard to achieving this aim. New technologies may make individual solutions such as electric heating, heat pumps...

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Bibliographic Details
Published in:Energy (Oxford) 2012-12, Vol.48 (1), p.47-55
Main Authors: Münster, Marie, Morthorst, Poul Erik, Larsen, Helge V., Bregnbæk, Lars, Werling, Jesper, Lindboe, Hans Henrik, Ravn, Hans
Format: Article
Language:English
Subjects:
Applied sciences
Cost analysis
cost effectiveness
District heating
Electricity
Energy
energy density
Energy system analysis
Energy use
European Union
Exact sciences and technology
fossil fuels
heat
heat pumps
Investments
Marketing
markets
Networks
Optimization
Sustainability
wind power
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Summary:In the EU and in Denmark, the aim is to reduce dependence on fossil fuels and to use energy more efficiently. District heating and combined heat and power have significant potential with regard to achieving this aim. New technologies may make individual solutions such as electric heating, heat pumps and micro-CHP more attractive than previously. Therefore, the competitive conditions between district heating and other types of heating may change in the future. The question is therefore whether district heating can contribute to ensuring the sustainability of future energy systems? Denmark is used as a case as the country has a high share of district heating and produces 20% of the electricity with wind power. The analyses are carried out using the electricity market model Balmorel, which facilitates cost optimization of operation and investments in energy production plants as well as electricity transmission. To be able to perform the analysis an extension of the model is developed, where it is also possible to optimize between investments in individual heating plants or in expansion of the district heating networks, depending on investment costs, energy density of the potential areas and their distance to existing district heating networks. Results show that district heating may contribute to the sustainability and security of supply of future energy systems and that under the given assumptions it is cost effective to increase the share of district heating up to 55–57% of the heat demand although substantial heat saving measures are installed. ► Energy system analysis of a future Danish energy system with the Balmorel model. ► Optimization of investments in DH in competition with individual heating solutions. ► Expansion of DH networks is feasible in future efficient Danish energy systems. ► District heating adds flexibility to the overall energy system. ► It is feasible to cover the remaining individual heating by heat pumps.
ISSN:0360-5442
DOI:10.1016/j.energy.2012.06.011